Use this problem to answer questions 14 - 23

Alexander Communications wants to enter the cell phone market. They have two models of phones that they can build and they have test marketed the phones to try and determine the sensitivity of customer demand to price. Their unit cost to make a phone regardless of the model is $45. Their small factory has the capacity to manufacture 2500 phones per month.

Use the following Decision Variables for this problem:

Let Pi equal the price for cell phone i. i = 1, 2.

(14 - 17) (2 points) Use data from the spreadsheet, CellPhones, to determine the demand equations for each phone.

Demand1 = _________ - _________P1

Demand2 = _________ - _________P2

(18) (1 point) Write down the objective function using the decision variables for a non-linear program to find the optimal price for each phone in order to maximize profit?

(19) (1 point) Write down the constraint using the decision variables for the maximum capacity of their factory?

(20 - 21) (1 point) Solve the non-linear program to maximize the profit. What are the optimal prices for each phone?

(22) (0.5 points) What is the optimal profit?

(23) (0.5 points) Upload your spreadsheet showing the optimal solution and Answer Report.

Monthly Demand	Phone	Price
1682	1	81
1750	1	75
1111	2	75
617	2	93
1544	1	81
219	2	105
808	2	87
1436	1	93
497	2	99
1319	1	99
1315	1	93
373	2	99
1222	1	99
744	2	87
1348	1	93
1711	1	75
669	2	93
1190	1	99
790	2	87
1650	1	81
1219	1	99
976	2	81
895	2	81
1331	1	99
268	2	105
245	2	105
1307	1	99
536	2	93
1525	1	87
1478	1	87
901	2	81
1380	1	93
1164	2	75
1249	1	99
1571	1	81
924	2	81
1534	1	87
1110	2	75
1702	1	75
920	2	81
1609	1	81
1203	1	105
1118	2	75
1458	1	87
373	2	99
1266	1	99
1200	1	105
1032	2	81
735	2	87
1199	1	99
730	2	87